Foodgrains Availability, Money Supply and the Price Level in East Pakistan: Some Simple Econometrics on Short-Term Stabilisation Policies (Notes & Comments)

In the 1960’s Pakistan’s economy started generating rates of growth of over 5 per cent per year—higher than those observed in many other under¬developed countries including its neighbours. Industry is growing rapidly. Exports are increasing by over 7 per cent per year. Perhaps more significant, many believe, an agricultural revolution is underway. Some observers consider this to be remarkable and a model of development in the non-socialist world. However, the brief growth experience of the 1960’s, after the long stagnation during the 1950’s, can hardly be a basis for definitive conclusions about long-run development. Observation of a longer period and evidence of certain basic conditions are necessary for such extrapolation. The dependence on foreign aid continues to be large and the domestic saving rate is relatively low. It is too early to talk of self-sustaining growth.